The United Kingdom has eliminated the four percent import duty on nuclear reactors from India, opening the door for India’s indigenous nuclear technology to enter global markets. The provision, part of the Comprehensive Economic Trade Agreement (CETA) signed on July 24, marks a major milestone in India’s ambitions to become a nuclear technology exporter.
First-Ever Zero Tariff Access for Indian Nuclear Reactors
This is the first instance of India securing zero-duty access for nuclear reactors in any trade deal, and it comes at a critical juncture. The government has developed its own 220 MW small modular reactors (SMRs) — called Bharat Small Reactors (BSRs) — designed to offer a cleaner, more affordable energy solution. India has developed Bharat Small Reactors (BSRs) as pressurised heavy water reactors (PHWRs), compact enough to serve as captive power plants and ideally suited to decarbonise hard-to-abate sectors like steel, aluminium, and other metals.
Government Eyes Global Exports, Led by NPCIL
India’s nuclear energy sector, once a closed, government-only domain, is now gradually being opened to state governments and private players. The Nuclear Power Corporation of India Ltd (NPCIL), the country’s sole builder and operator of nuclear plants, has initiated discussions to formulate an export policy for Indian-built reactors.
“Exporting is the natural next step for NPCIL — similar to what we’ve seen in the defence sector with ‘Made in India’ products now going global,” informed a senior government official. “The India-UK trade deal is a gateway for Indian nuclear exports, and our BSRs are significantly cheaper than those from the West,” the person stated.
India’s Price Advantage in a Growing Global Market
Globally, demand for small modular reactors is rising due to their flexibility, scalability, and lower upfront costs compared to traditional nuclear setups. India’s BSRs are expected to be at least 50% cheaper than those offered by South Korea, currently regarded as the most cost-efficient after Russia.
India’s reactors are also poised to undercut offerings from the US and France, which manufacture some of the most expensive nuclear technology in the market. The cost competitiveness, combined with India’s engineering and research capabilities, gives the country a distinct advantage in the international nuclear landscape.
UK’s Nuclear Push Aligns with India’s Capabilities
The timing of the zero-duty agreement is strategic. The UK government is investing heavily in nuclear energy to meet its net-zero carbon emissions target by 2050, aiming for at least 25 GW of nuclear capacity. India’s indigenous SMRs align perfectly with this goal, offering a low-carbon, modular solution that could support the UK’s clean energy transition.
India’s Ambitious Nuclear Roadmap
India has outlined an aggressive roadmap for nuclear expansion. It aims to increase its installed nuclear capacity from 8.7 GW today to 22.48 GW by 2031–32, and ultimately to 100 GW by 2047. The development and potential export of BSRs will play a pivotal role in achieving these targets, both domestically and internationally.
Imports from UK Likely Limited Despite India’s Tariff Cut
As part of the mutual trade agreement, India has also reduced import duties on nuclear reactors from the UK, slashing them from 8.2% to zero. However, officials noted that Britain manufactures few reactors domestically, so India is likely to import only a minimal number from the UK.
Conclusion: A New Chapter in India’s Nuclear Diplomacy
As reported by moneycontrol.com, the India-UK trade deal has unlocked a historic opportunity for India to export its nuclear technology, particularly the Bharat Small Reactors. As countries seek cleaner, scalable energy solutions, India is emerging as a credible, cost-effective supplier — setting the stage for a new era in nuclear diplomacy and strategic energy exports.
